New report reveals challenges in Scotland’s private rented sector
Scotland’s Housing Network (SHN) has published its first report on the Scottish private rented sector.
The report has been informed by a national survey of more than 9,000 landlords and letting agents who own and/or manage privately rented properties in Scotland.
The report provides insight into the future intentions of private landlords across Scotland that will shape the future of the housing market in Scotland.
Written by Dr Trudi Tokarczyk, the report focuses on the characteristics and experiences of landlords and how they acquire, let, manage and maintain privately rented accommodation.
The report highlights the aging profile of landlords with more than half (62%) of landlords aged 55 or over in contrast to 4% of landlords who were aged from 25 to 34 years of age.
Many landlords in Scotland are struggling with the rising costs of compliance with new regulations, coupled with the pressures of inflation and interest rate rises. When asked about future plans for their portfolio, 16% of landlords planned to decrease their number of properties, and a similar number planned to sell all properties and leave the business (12%).
Landlords’ future plans differ depending on their portfolio size and funding source. Landlords with smaller property portfolios were more likely to report plans to decrease or sell their rental property due to financial reasons (32%). Conversely, landlords with larger property portfolios were more likely to report planning to decrease or sell their rental property due to recent or forthcoming legislative changes.
Andrea Finkel-Gates, CEO, Scotland’s Housing Network, said: “The private rented sector has more than doubled in size since 1999, however there is relatively limited information available on the functioning of the private rented sector in Scotland.
“For this reason, this study is an important insight into the characteristics and experiences of private landlords.”